The Argentine government eradicated energy subsidies aimed at cryptocurrency miners.
The Argentine Secretary of Energy stopped directing energy subsidies to crypto miners. The measure skyrocketed the cost of energy to at least four times what miners paid before. The procedure impacted critically customers of electrical sources in Tierra del Fuego, far in the south of the nation.
The measure impacted the activity in the Argentine region, which is one of the most needed places to carry out mining activities due to its specific climatic characteristics, including the cold areas.
According to a new resolution 40/2022, which got revealed and achieved official status on February 1, the new energy price for miners in zones like Ushuaia and the Río Grande would circle 5,000 ARS (or USD 47.50) per MW/H. Before this resolution got revealed, these miners used to pay at least 1,764 ARS (or $16.76) per MW/h.
The real ambitions that lay behind this sudden change appeared in the resolution. The current resolution highlights that it is suitable for these users to go through a payment equivalent to the cost of supply.
The Details Inside of this Resolution
The resolution impacted miners that carry out their activities in the province of Tierra del Fuego. It is in this place where most miners in Argentina got based; this is because of the cold climate that makes the establishment of mining farms easier and works properly without harsh cooling capabilities.
The Undersecretary of Electric Power also stated in the resolution sent CAMMESA, the electric company, a brief note asking for vital data concerning new consumption related to activities like crypto mining, which could allow a testing phase to study current and future demand. The demand for this newborn economic activity has been increasing recently.
Challenge for an Electric Company Like Cammesa
Cammesa, the energy company currently based in Argentina, is now struggling with an important challenge. The company is working hard to identify which sources are receiving the supplied energy for cryptocurrency mining purposes. During a series of investigations that took effect last year, the company identified at least two cryptocurrency mining facilities carrying out activities in the zone.
According to various media outlets, there is no official information regarding the current situation but, there is zero doubt that more and more people and companies are now carrying out mining activities to boost the cryptocurrency market.
It is also relevant to consider that in November 2021, various reports highlighted that the Canadian-based mining giant Bitfarms revealed the creation of a mining mega-farm with operations n Argentina, specifically in the province of Córdoba. The construction of this mega-farm to mine crypto goes in association with a private power plant.
Bitfarms stated that it would purchase the power directly from this private electricity company, without generating any impact on the electricity grid that feeds the South American Nation, so the power supply would not be harmed by this procedure.
By: Jenson Nuñez
